<p>Cumulative evidence has shown that Virtual Reality (VR) can effectively induce human well-being, including Subjective well-being and Psychological well-being. This scoping review aims to explicate and theorise how and why VR leads to human well-being through a scoping review of 18,008 articles and coded 187 articles in the final dataset. Three key components in this mechanism—VR illusion (Place Illusion, Plausibility Illusion, Virtual Body Ownership), stimulus effect on well-being, and well-being dimension—were coded, and the causation between nodes was analysed, among these experiments. Thirty-two effects were identified, such as empathy concern induction, and stress reduction. The results show that Place Illusion is primarily used to enhance subjective well-being by immersing individuals in restorative and awe environments. In contrast, Plausibility Illusion and Virtual Body Ownership are more commonly linked to psychological well-being, helping reduce the psychological distance to concerns and leveraging the Proteus Effect (i.e., effects of the embodied virtual body on self) and Embodied Experience. Illusion elicitation techniques associated with each illusion were categorised and theories that are commonly applied were organised. With consideration of individual differences, the Virtual reality-InducE Well-being (VIEW) model, a four-step flowchart, was developed. The model illustrates that through the design of VR elements such as the environment, interaction, and virtual body, it can effectively lead to three illusions, which in turn lead to various routes (i.e., affective, cognitive, and physiological), ultimately resulting in subjective and/or psychological well-being. Theoretical and practical implications are discussed.</p>